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Financial Results
Q1 2016
NASDAQ: SBLK
June 2016
2
Except for the historical information contained herein, this presentation contains among other things, certain forward-looking statements, that involve risks
and uncertainties. Such statements may include, without limitation, statements with respect to the Company’s plans, objectives, expectations and intentions
and other statements identified by words such as “may”, ‘could”, “would”, ”should”, ”believes”, ”expects”, ”anticipates”, ”estimates”, ”intends”, ”plans” or
similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks
and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange Commission. Actual results, including, without limitation,
operating or financial results, if any, may differ from those set forth in the forward-looking statements. These forward-looking statements involve certain risks
and uncertainties that are subject to change based on various factors (many of which are beyond the Company’s control).
In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed
in the forward-looking statements include general dry bulk shipping market conditions, including fluctuations in charterhire rates and vessel values, the
strength of world economies the stability of Europe and the Euro, fluctuations in interest rates and foreign exchange rates, changes in demand in the dry bulk
shipping industry, including the market for our vessels, changes in our operating expenses, including bunker prices, dry docking and insurance costs, changes in
governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and
international political conditions, potential disruption of shipping routes due to accidents or political events, the availability of financing and refinancing, our
ability to meet requirements for additional capital and financing to complete our newbuilding program and grow our business, vessel breakdowns and
instances of off‐hire, risks associated with vessel construction and potential exposure or loss from investment in derivative instruments. Please see our filings
with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The information set forth herein
speaks only as of the date hereof, and the Company disclaims any intention or obligation to update any forward‐looking statements as a result of
developments occurring after the date of this communication.
Certain financial information and data contained in this presentation is unaudited and does not conform to generally accepted accounting principles (“GAAP”)
or to Securities and Exchange Commission Regulations. We may also from time to time make forward-looking statements in our periodic reports that we will
furnish to or file with the Securities and Exchange Commission, in other information sent to our security holders, and in other written materials. We caution
that assumptions, expectations, projections, intentions and beliefs about future events may and often do vary from actual results and the differences can be
material. This presentation includes certain estimated financial information and forecasts that are not derived in accordance with GAAP. The Company believes
that the presentation of these non-GAAP measures provides information that is useful to the Company’s shareholders as they indicate the ability of Star Bulk,
to meet capital expenditures, working capital requirements and other obligations, and make distributions to its stockholders.
We undertake no obligation to publicly update or revise any forward-looking statement contained in this presentation, whether as a result of new information,
future events or otherwise, except as required by law. In light of the risks, uncertainties and assumptions, the forward-looking events discussed in this
presentation might not occur, and our actual results could differ materially from those anticipated in these forward-looking statements.
Forward-Looking Statements
3
Q1 2016 Financial Highlights
Notes: (1) Net revenues = Total gross revenues adjusted for non-cash items – Voyage expenses
(2) Excludes pre-delivery expenses
(3) Excludes one-off severance payments and share incentive plans, includes management fees paid to third parties
(4) Numbers reflect reverse split announcement on June 2016
Three months ended March 31,
2016
Three months ended March 31,
2015
Increase / (Decrease) %
Net revenues(1) $26.9m $31.7m (14.9)%
EBITDA Adjusted $(7.3)m $(5.6)m -
Net Loss $(48.8)m $(40.2)m -
Net Loss Adjusted $(38.3)m $(29.8)m -
TCE $4,968 $6,866 (27.6)%
Average daily OPEX per vessel(2) $3,591 $4,439 (19.1)%
Average daily Net Cash G&A expenses per vessel(3) $1,148 $1,130 1.5%
Average N. of Vessels 72.7 65.1 11.7%
EPS Adjusted $(0.87) $(0.97) (10.0)%
Weighted average number of shares outstanding, diluted(4) 43,824,122 30,649,331 -
Total Cash as of June 24th, 2016 $159.2m
Outstanding Debt as of June 24th, 2016 $984.3m
4
Continued Operational Excellence
Vessel OPEX(1) were $3,591 per day in Q1 2016, reduced by ~19% compared to the respective $4,439 for Q1 2015
Net cash G&A expenses per vessel per day were $1,148
Over 91% of managed vessels(3) have a 5 star Rightship rating with all other vessels rated with 4 stars
$2,254
$1,817
$1,405 $1,402 $1,440
$1,134 $1,148
0
500
1,000
1,500
2,000
2,500
2010 2011 2012 2013 2014 2015 Q1 2016
Net Cash G&A Expenses/day/vessel
…and competitive Net Cash G&A(2) Expenses due to
economies of scale
$5,665$5,642
$5,361$5,523
$4,750
$4,233
$3,591
$5,295
$5,557
$5,590 $5,756$5,51682K
88K
106K101K 100K
104K 104K
0K
20K
40K
60K
80K
100K
120K
$3,000
$3,500
$4,000
$4,500
$5,000
$5,500
$6,000
$6,500
$7,000
2010 2011 2012 2013 2014 2015 Q1 2016
Average Daily OPEX SBLK Moore Stephens Industry Average
We operate a fleet with one of the lowest average daily OPEX…
(1) Figures exclude pre-delivery expenses(2) Excludes one-off severance payments and share incentive plans, includes management fees(3) Excludes vessels that are in lay up
…without compromising quality…
Average Daily OPEX(1) Net Cash G&A Expenses(2)5 star Rightship Rating
84% 85%88% 88%
91%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 (3)
5
Industry Leading OPEX
1) Excludes pre-delivery expenses 2) Peer Average figures exclude SBLK3) Includes dry-docking costs
*
$4,884
$3,591 $3,653
$4,552 $4,573
$5,115 $5,177
$5,539 $5,582
104,966
88,022
108,797
73,686
54,638
129,988
62,981
113,955
90,295
(70,000)
(50,000)
(30,000)
(10,000)
10,000
30,000
50,000
70,000
90,000
110,000
130,000
Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
Daily Opex per Vessel Peer Avg Daily OPEX per Vessel Avg Vessel Size of Fleet (dwt) Peer Avg Size of Vessels (dwt)
(3)(1)
(2) (2) (2)
6
For the next three years, we have minimal equity CAPEX requirements
Our newbuilding program spreads until 2018
We have no further deliveries in 2016(1), with the remaining of the newbuilding vessels being delivered until 2018: three vessels in 2017 and two vessels in Q1 2018
Capex Schedule
(1) As of June 24, 2016(2) Based on maximum expected debt amount
2016 2017 2018 Total 2016-2018Remaining(1) FY FY Remaining(1)
NB Capex (1) $5.8 $113.3 $74.3 $193.4
Committed Debt Amount(2) $0.0 $112.4 $80.0 $192.4
Equity CAPEX Requirements
$0.0 $5.8
$77.7
$0.0
$35.6
$0.0
$74.3
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
$180.0
$200.0
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018
2 vessels 2 vessels
1 vessel
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Dry Bulk Supply Update
2016 Fleet growth running at +0.5% YTD and +2.4% Y-o-Y
Demolition activity: approx. 22 million dwt
Slippage is estimated to affect more than 40% of scheduled deliveries
Orderbook currently estimated at approx. 15.0% from 21.0% last year
Contracting: 12.3 mil. Dwt from 7.8mill dwt last year. 2016 figures include 12.0 mil dwt for 30 Valemax delivery 2018+
Cancellations & Conversions expected to continue during 2016/17
Fleet above 15 years of age currently at approx. 15.5% of the fleet
Record low contracting expected to gradually trim 2017/18 deliveries
2016 Net fleet growth projected between 1.0% and 2.0%
2017 Net fleet growth projected to drop bellow 1.0%
Source: Clarksons
Dry Bulk New Orders Dry Bulk Deliveries
Dry Bulk DemolitionMillion DWT
Million DWTMillion DWT
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Dry Bulk Demand Update
After two years on a downward trend, commodity prices appear to have reached a bottom during the first quarter of 2016
Total dry bulk ton miles projected to marginally increase during 2016
Iron ore ton-miles: +1.9% vs +0.6% in 2015
Thermal & Coking Coal ton miles: -2.0% vs -5.9% in 2015
Grains incl. soybeans ton-miles: +2.9% vs +9.6% in 2015
Minor bulk ton-miles: +1.6% vs +1.4% in 2015
Trade growth to gradually improve during second half 2016
Global consumption stimulus from low oil, raw material prices and low interest rates.
China monetary stimulus and incentives to boost real estate investment - Real estate prices on recovery path.
Inefficient Iron ore producers in China closing down and replaced by imports.
China domestic coal capacity cuts on massive domestic production stimulating import recovery.
Coal ton-miles boost from Indonesia export substitution
Healthy grain and soybean demand growth
Minor bulk ton miles – West Africa bauxite
ASEAN and India infrastructure development acceleration.
India coal needs for electricity generation & steel making may exceed domestic coal production growth in the medium term.
Lift of Iran sanctions
Need to replenish depleted stocks to higher levels (Iron ore, Coal, Steel, Bauxite, Nickel ore) as commodity prices recover.
Source: Clarksons
Dry Bulk Trade – Full Year Growth (Tons)
Dry Bulk Trade – Full Year Growth (Ton-Miles)
Appendix
Fleet Update
On a fully delivered basis, our fleet will consist of 75 vessels with 8.5 million dwt with average age of 8.3 years (1)
(1) Represents January 2018 average age; excluding 90’s built vessels
68
9 11
1515 15
15
44 4
4
1818 18
18
44 4
414
14 1414
99 9
970
72 7375
0
20
40
60
80
100
24/Jun/2016 Q1 2017 Q3 2017 Q1 2018
# o
f O
TW
ve
sse
ls
Newcastlemax Capesize Post Panamax Kamsarmax Panamax Ultramax Supramax
11
Fleet Employment Update
We have 10 vessels on period charters:
• Average fixed rate of $8,722(1)
• Average duration of 4.6 months(1)
(1) As of May 31st, 2016
Fleet Employment
Vessel Size Charterer2016 2017 Gross TC
Rate2Q 3Q 4Q 1Q 2Q 3Q
Star Eleonora
CAPESIZE
Major Trading Company
$8,888
Star MonishaMajor Trading
Company$9,500
Star AuroraTrading
Company$8,050
Star Sirius
POST-PANAMAX
Glocal Maritime $15,000
Star Vega Glocal Maritime $15,000
Mercurial Virgo
KAMSARMAX
Major Trading Company
$8,900
Star DanaiMajor Utility
Company$8,100
Star Mariella United $8,900
Star Vanessa
PANAMAX
ABT $7,750
Star Emily Major Trading
Company$7,800
THANK YOU
ContactsCompany: Simos Spyrou, Christos BeglerisCo ‐ Chief Financial Officers Star Bulk Carriers Corp.c/o Star Bulk Management Inc.40 Ag. Konstantinou Av.Maroussi 15124Athens, GreeceTel. +30 (210) 617-8400Email: [email protected] www.starbulk.com
Investor Relations / Financial Media:Nicolas BornozisPresidentCapital Link, Inc.230 Park Avenue, Suite 1536New York, NY 10169Tel. (212) 661‐7566E‐mail: [email protected]
